Artificial intelligence is often hailed as the ultimate productivity booster, yet a closer examination reveals that it may not be the silver bullet we hope for. Despite the promises of tech leaders like Microsoft’s Satya Nadella, the reality is that efficiency alone cannot address the deeper issues plaguing productivity growth. Over the last few decades, even with the advent of faster computers and advanced AI tools, labor productivity in advanced economies has stagnated, highlighting a critical gap between technological advancements and genuine innovation.